Monday, October 26, 2009

National Index Rises Above Recession Level - The Chicago Federal Reserve reported that the national activity index (includes 85 separate indices) rose to -0.63 over the past three months from -0.96 in the three months ending in August. This marks the first time the index's three-month average has been above the -0.70 level since early in the recession. For September, the index slipped to negative 0.81 from negative 0.65 in August. In September, production and income indicators were positive for the third straight month, but the other three main categories (employment, sales and consumption) remained negative.

Dollar Trades Higher, Oil Falls on Dollar's Strength - The dollar has traded higher Monday by about 0.6% reversing a trend against the Euro. On the news, oil traded below $80 (stronger dollar equals lower crude oil prices). Also adding to pressure on oil was an announcement over the weekend that Nigeria's main militant group declared an indefinite ceasefire which had put some possible supply pressure into the price.

Gold, Copper Fall on Stronger Dollar - Gold and other metals futures turned lower midday Monday as the U.S. dollar rose off earlier lows. Gold for December delivery was down about $10.10 (0.9%) at $1046 an ounce. Gold, seen as a safe place to park cash in uncertain times, often trades in the opposite direction of US stocks. But lately, both have been rising together as a drop in the dollar makes hard assets like gold and oil more valuable, and at the same time, supports profits at US companies with international earnings.

Romer: Health Care Reform Is Key to Deficit - Council of Economic Advisers Chair Christina Romer in prepared remarks said Monday morning that health care reform is "the most significant act" the U.S. can take to tackle its long-term budget deficit problem. "Done correctly, health care reform can genuinely slow the growth rate of health care costs and thus put us on a path to greatly reduced budget deficits in the long run."

About Us

Rollins Financial, Inc. is an SEC registered investment advisory firm that was established in Atlanta, Georgia in 1990 by Joseph ("Joe") R. Rollins. Joe along with partners Robert ("Robby") E. Schultz, III and Edward ("Eddie") J. Wilcox offer independent investment management services for individuals, small businesses and
corporations.

Rollins Financial employs various investment strategies depending on the specific objectives of each client. Our independence insures that we are able to provide the most objective investment advice since we receive no compensation from any third parties.

Important Disclosures

The information provided on the Rollins Financial Blog is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor should review a security transaction and investment strategy for his or her own particular situation. Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Where specific advice is necessary or appropriate, consult a qualified tax advisor, CPA, financial planner or investment manager.